It’s clearly dearer, but it adds leather interior trim, a second USB input, dual-zone climate control and sat-nav as standard. Also has 17-inch alloys with full-size spare, reversing sensors, auto headlights and wipers, six airbags (no driver’s knee ‘bag). No push-button start. Metallic paint is a $750 option. Fixed price servicing for three years or 60,000km, average cost $370 per annum.

Winner: Ford

Inside

Ford Fiesta ST

Not as flash inside. The Recaro seats offer excellent support with body-hugging bolsters and good adjustment, but the branded stitching looks cheap. Soft plastics on the dash and ambient light strip on the passenger side are nice. Decent levels of storage. Lacks a digital speedo and no sat nav on the options list. Boot tighter at 276 litres. Too many stereo buttons.

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Peugeot 208 GTi

A more contemporary atmosphere. Neat, simple dash and ambient lighting around the instruments, and funky black-to-red finishes. Good storage and clever interior design means it feels roomier inside. Digital speedo is a big plus, though some drivers complained of not being able to see it due to the tiny steering wheel. Larger boot at 311L, and roomier in the rear seat with better head and leg room.

Winner: Peugeot

Under the bonnet

Ford Fiesta ST

A rorty little engine that comes to life from low down in the rev range, but feels at its best from about 3500 rpm onwards. It feels more flexible and urgent under full throttle, and the engine symposer that pumps noise into the cabin eggs the driver on like an eager passenger. The six-speed gearbox in our test car felt slightly notchy.

Peugeot 208 GTi

Also a sweet revver, the 208’s engine feels more linear in its delivery through the rev range but not as manic. On paper it is 0.1 seconds quicker from 0-100km/h (6.8s v 6.9s in the ST), though it’s difficult to notice any difference in pace in the real world. Doesn’t sound as sporty. Slightly slicker gearshifts.

Winner: Ford

How it drives

Ford Fiesta ST

Feels much more focused on sportiness, with a far stiffer ride. The result of its firmness, however, is that it feels suctioned to the road, with excellent levels of grip. Its steering is heavier and responds quickly and precisely to small inputs, and there’s minimal torque-steer under hard acceleration. It is heavier than the 208 GTi and feels more planted.

Peugeot 208 GTi

The 208 GTi feels lighter and more nimble at lower speeds - in part due to its tiny steering wheel and more electric assistance - but it lacks the gripped-down feel of the Fiesta when pushed hard. The steering isn’t as accurate, but happily there’s minimal torque-steer here, too. The suspension is more supple and cosseting for daily duties yet still firm over sharper bumps. While it handles well, it’s outgunned by the Fiesta in the twisty stuff.

Winner: Ford

Wow factor

Ford Fiesta ST

Some may love the new Aston Martin-inspired look, and we’d agree that the ST looks better than any other Fiesta in the range. But for kerbside attention, it doesn’t scream sporty as loudly as it could, and it’s just too plain inside.

Peugeot 208 GTi

Its styling is on the subtle side in terms of sportiness, but it has a more appealing appearance from all angles. Doesn’t toot its GTi horn too boisterously, but Peugeot has subtly nodded to its predecessors in its styling. The interior feels so much more special.

Winner: Peugeot

Verdict

Ford Fiesta ST

The new pocket rocket benchmark. A wow of a car, a great price and oodles of fun, this offering from the blue oval has the potential to be a cult hit.

Peugeot 208 GTi

A great hot hatch in isolation, and one that feels more special on the whole. But it’s outdone in the most important facets of this contest.